Marconi set to rejoin FTSE 250

MARCONI will take another step towards rehabilitation this week when it is promoted to the FTSE 250 index.

The telecoms business underwent a lifesaving restructuring in May when it agreed to swap £4.7 billion of debt for equity in a new company, Marconi Corporation, and on Wednesday officials at the FTSE will confirm that they are to return the stock to the index.

Marconi dropped out of the FTSE listings on May 19 because its restructuring meant that the old business had effectively ceased to exist. But a market capitalisation of £890 million means Marconi now comfortably qualifies as one of the 250 biggest UK listed companies and the news is sure to be a welcome boost to its investors when they attend its annual meeting tomorrow.

British Airways is another prominent name in line for some good news when the results of the FTSE quarterly review are announced. The airline is poised to rejoin the 100 index. The reshuffle could also see newly floated directories business Yell join the blue-chip index, with water company Kelda and pubs business Mitchells & Butlers falling out.